Purpose of the PP

[dualstow]

PP's doing its thing lately, guys.

[buddtholomew]

PP's doing its thing lately, guys.

Well I'll be darned

[ochotona]

The purpose of the PP is this, seen at the Museum of Fine Arts Houston yesterday, as part of the Norman Rockwell: American Freedom exhibition (which was fantastic). The purpose is to serve as the investor's antidote to being conditioned to ".... certain habits, certain ways of thinking" (AKA "recency bias" and "herding").



Carl Mydans (May 20, 1907 – August 16, 2004) was an American photographer who worked for the Farm Security Administration and Life magazine.

Ill Housed, Ill Clad, Ill Nourished, 1936,
printed 1976

Gelatin silver print

The Museum of Fine Arts, Houston
Museum purchase funded by
Mr. and Mrs. Alvin S. Romansky
76.410

Influenced by Stuart Chase, an American economist who advocated for more government intervention to help solve the Great Depression, Franklin D. Roosevelt campaigned on a "New Deal" for the public. Chase clearly stated the problem facing the country: "Here is a nation of some 75 million adult citizens, conditioned to certain habits, certain ways of thinking, he argued. "The economic system they have known is collapsing under them. They are bewildered, afraid."

[Smith1776]

Thanks for posting this, Ochotona.

Amazing stuff. I think the PP can indeed be an antidote to thinking along standard lines. (American businesses will grow without limit, stocks always go up, etc.)

I suppose a given person can be conditioned and overly attached to any given way of thinking, including the PP. However, given the diversity of assets and the agnostic perspective on the future, it's probably less susceptible to such foibles than most.

[ppnewbie]

I think someone mentioned this before but I use the GB for peace of mind. It’s nice to detach from the financial economy once the GB / HBPP is in place, especially if you are middle aged.

[mathjak107]

in my opinion that still remains to be seen once the trend in rates is back up and not just a speed bump like we have seen for 40 years . if i had to guess , i will say that is kryptonite to the pp . we have no modern day history at all with a sustained rise.

markets are very different today with 90% of trad-able assets bought and sold via machines daily with no human logic

[jhogue]

Can a machine panic?

It seems to me that the origins of the equity market events of the last ten days are driven by human emotion, however the trades are placed.

[mathjak107]

much of the trading is machine selling because most pro's and institutions use margin .

steep selling leads to more selling as traders unwind leverage ... when we go back up buying leads to more leverage and buying ...

automated selling all seem to focus on the same major criteria in the programs

[mathjak107]

much of the trading is machine selling because most pro's and institutions use margin .

steep selling leads to more selling as traders unwind leverage ... when we go back up buying leads to more leverage and buying ...

automated selling all seem to focus on the same major criteria in the programs

See , nothing changed except the machines bought , which caused more machines to buy , which caused the shorts to run for cover and the result is an almost 1300 point gain on no news